JPMorgan says yen and gold may improve as trade-war hedges

Bloomberg/Joanna Ossinger

“Traditional hedges gold and the yen have performed poorly since the beginning of the U.S.-China trade war, but that could now change given the more dovish monetary backdrop, according to JPMorgan Chase & Co. A combination of a Federal Reserve that has stopped tightening policy and investor positioning that suggests the two assets are under-owned, could see their performance as hedges improve in 2019 and 2020, wrote strategists including John Normand in a note Friday.”

USAGOLD note:  As we say repeatedly here, the ideal time to buy gold is when everything is quiet. . . .or to put it another way, when it is under-priced, under-owned and under-appreciated.  Gold and the Japanese yen, as you can see in the charts below, have been travelling companions since the last financial crisis.  The markets perceive both to be safe-havens, though there is no guarantee that the two will remain travelling companions in the future.

Japanese yen
Gold


Repost from 5-23-2019

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